White Mountains Insurance Group Ltd (WTM) Reports Q3 2023 Earnings
White Mountains Insurance Group Ltd (NYSE:WTM) reported book value per share of $1,542 and adjusted book value per share of $1,588 as of September 30, 2023.
Comprehensive income attributable to common shareholders was $23 million and $224 million in the third quarter and first nine months of 2023 respectively.
The company's Ark/WM Outrigger segment reported a combined ratio of 77% and 83% in the third quarter and first nine months of 2023 respectively.
White Mountains Insurance Group Ltd (NYSE:WTM) did not repurchase any of its common shares in the third quarter of 2023.
White Mountains Insurance Group Ltd (NYSE:WTM) released its earnings report for the third quarter of 2023 on November 6, 2023. The company reported a book value per share of $1,542 and an adjusted book value per share of $1,588 as of September 30, 2023. Both the book value per share and the adjusted book value per share increased by 1% in the third quarter and 6% in the first nine months of 2023, including dividends.
Financial Performance
White Mountains Insurance Group Ltd (NYSE:WTM) reported comprehensive income attributable to common shareholders of $23 million in the third quarter and $224 million in the first nine months of 2023. This is compared to $890 million and $748 million in the third quarter and first nine months of 2022 respectively. The results in the third quarter and first nine months of 2022 included the net gain from the sale of NSM of $876 million.
Segment Performance
The company's Ark/WM Outrigger segment reported a combined ratio of 77% and 83% in the third quarter and first nine months of 2023 respectively. The segment reported gross written premiums of $251 million and $1,667 million, net written premiums of $231 million and $1,306 million, and net earned premiums of $499 million and $1,047 million in the third quarter and first nine months of 2023 respectively. The segment reported pre-tax income of $99 million and $193 million in the third quarter and first nine months of 2023 respectively.
Share Repurchases
White Mountains Insurance Group Ltd (NYSE:WTM) did not repurchase any of its common shares in the third quarter of 2023. However, in the first nine months of 2023, the company repurchased and retired 24,165 of its common shares for $33 million at an average share price of $1,354.88, or 85% of White Mountainss adjusted book value per share as of September 30, 2023.
Investments
The total consolidated portfolio return was -0.2% in the third quarter of 2023. Excluding MediaAlpha, the total consolidated portfolio return was 0.6% in the third quarter of 2023. The total consolidated portfolio return was 5.3% in the first nine months of 2023. Excluding MediaAlpha, the total consolidated portfolio return was 6.3% in the first nine months of 2023.
Conclusion
White Mountains Insurance Group Ltd (NYSE:WTM) has shown a steady increase in its book value per share and adjusted book value per share in the third quarter and first nine months of 2023. The company's Ark/WM Outrigger segment has also shown strong performance in the same period. Despite not repurchasing any shares in the third quarter, the company has repurchased and retired a significant number of shares in the first nine months of 2023.
Explore the complete 8-K earnings release (here) from White Mountains Insurance Group Ltd for further details.
This article first appeared on GuruFocus.
